Firm Settles FINRA Charges for Deficiencies in Large Option Positions Reporting

A broker-dealer settled FINRA charges for failing to comply with Large Option Positions Reporting ("LOPR") system requirements under FINRA Rule 2360(b)(5) ("Reporting of Options Positions").

In a Letter of Acceptance, Waiver and Consent, FINRA found that the firm (i) deleted expiring over-the-counter positions from its reports to the LOPR system and (ii) failed to establish and maintain a supervisory system that was reasonably designed to comply with FINRA's LOPR obligations. FINRA noted that the firm previously settled charges for the same violative conduct in 2016.

As a result, FINRA found that the firm violated FINRA Rule 2360(b)(5) ("Options"), FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade") and FINRA Rule 3110(a) ("Supervisory System").

To settle the charges, the firm agreed to (i) a censure and (ii) a $225,000 fine.